Loneliness is becoming increasingly recognised as a significant workplace issue, that has wide-reaching impacts on staff retention, productivity and performance.
This follows the growing epidemic of loneliness that has been seen, and this has been exacerbated by the reduced social contact over the pandemic and digitalisation of jobs.
As a result, research by Mental Health UK and YouGov in 2022 revealed that one in five individuals (20%) experience loneliness during a typical workday.
Of particular concern is the fact that young adults aged 18-24 are disproportionately affected, and over twice as likely to struggle with loneliness than other age groups at work. Even more concerning is the impact on mental health, with around 35% of workers aged 18-34 years saying that loneliness at work has affected their well-being.
Young people are the least likely to get help from colleagues, with 59% of workers between the ages of 18-25 saying they wouldn’t feel confident letting others know if they’re feeling lonely or isolated at work.
And the cost to businesses is substantial, as highlighted by the UK Government Department of Culture, Media, and Sport (DCMS), estimating the annual cost of loneliness is approximately £9,900 per person per year due to decreased productivity, health issues, and overall well-being.
Furthermore, research from the New Economics Foundation completed in 2017 found that UK employers bear a financial burden of up to £2.5 billion each year, attributed to factors such as decreased productivity, increased sick leave, and high staff turnover. As part of their findings, they were able to identify three major contributors.
- The Health Cost – the impact of loneliness on employee health outcomes, the costs of the associated sickness absence or the costs of having to care for friends and family struggling with loneliness-related health issues.
- The Productivity Cost – the impact of loneliness on employee wellbeing, and the costs to employees of the related reduction in productivity.
- The Retention Cost – the impact of loneliness on employee wellbeing, and the costs to employers of the related increase in staff turnover.
1. The Health Cost
Loneliness has been found to cause chronic stress and higher levels of a key stress-related hormone, cortisol.
This hormone damages blood vessels and other tissues, increasing the risk of heart disease, diabetes, joint disease, stroke, obesity, and premature death.
Research now shows that the health impact of loneliness is similar to smoking 15 cigarettes a day or drinking a bottle of wine a day.
On top of this loneliness also has well-established mental health implications, and can often lead to depression, anxiety and it is known to be a significant risk factor for suicide.
A report from Cigna found that lonely employees are twice as likely to miss a day of work due to illness, and five times more likely to miss work due to stress. Meanwhile, a lack of meaningful social interactions has also been shown to increase the risk of burnout, another pervasive issue in the modern workplace.
As part of the wider cost of loneliness – “the health cost” of absent work staff of sick due to loneliness or related issues, or due to caring for those with health issues related to loneliness was calculated to cost employers a total of £240 million per year.
2. The Productivity Cost
Chronic loneliness does not only have health impacts – it can also hijack your brain’s pre-frontal cortex, which governs decision making, planning, emotional regulation, analysis, and abstract thinking.
This is supported by the Surgeon General who outlined in the Harvard Business Review how loneliness impacts task performance, limits creativity, and impairs other aspects of executive function.
Loneliness can also cause workers to turn to drug and alcohol abuse, and it has been shown to cause poor or disturbed sleep, both of which impact effectiveness and alertness during work hours.
Loneliness has a particular impact on young people’s ambition and confidence levels, as a report by the Co-op foundation found that:
- 62% of lonely young adults say that ‘feeling lonely makes them lose confidence in themselves’
- 48% of lonely young adults say that feeling lonely makes them ‘less likely to want to progress in work’
We also know that loneliness can cause people to self-isolate and act in ways that may alienate others. As a result, lonelier employees seem less approachable and are subsequently left out of the loop when it comes tooffice communication.
Loneliness is also socially “contagious”, and so a few lonely individuals can have a negative impact on team dynamics and morale, affecting overall organisational culture and effectiveness.
“The Productivity cost” to organisations as part of the New Economics Foundation’s research was calculated to be the second highest cost, at £665 million per year.
3. The Retention Cost
However, the most costly impact of loneliness to businesses is the damaging effect on staff retention.
A study by Officevibe, found that 70 percent of employees say having friends at work is the key to a happy working life, and that over 60% of workers would turn down a pay rise, if it meant not getting on with work colleagues.
Meanwhile, a separate survey found that 57% of workers said that having just one good friend at work makes their job more enjoyable.
Researchers from the London School of Economics and Political Science found that employees who feel lonely are more likely to quit their jobs, with loneliness being a stronger predictor of leaving than job satisfaction or workload.
As loneliness disproportionately impacts young people at work, it is perhaps no surprise that the lowest staff retention is amongst this age group, with a 2022 Deloitte study showing that young people (18-29 years old) are the age group the most likely to have moved jobs or to be considering a job move.
“The retention cost” was found to be the highest of the New Economics Foundation’s research and cost employers £1.62 billion per year.
This is so costly because poor retention leads to significant recruitment and training costs and knowledge gaps within the organisation. But it also causes business disruption and the upheaval resulting from high staff turnover can damage customer relationships, company culture and morale.
The Solution
This research demonstrates the devastating cost that loneliness can have on one’s workforce, the individuals themselves and staff productivity.
This inevitably results in lower profits that can hamper business growth and organisational success.
On the reverse, building strong social connections can provide a sense of cohesion in a work team, which can foster creativity, strong communication and collaboration. Employees with positive relationships are more likely to support other team members, commit to the organisation and be motivated to perform.
And Deloitte’s research found that employers that invest in building social connections and supporting staff wellbeing see a return of £5.30 on average for every £1 invested.
In short, tackling loneliness in the workplace is not just socially responsible, it also makes very good business sense.
For organisations looking to tackle loneliness, and build social connections , the US Surgeon General published an Advisory on the Healing Effects of Social Connection and Community. He offered six recommendations to businesses to tackle loneliness in the workplace:
- Make social connection a strategic priority in the workplace at all levels (administration, management, and employees).
- Train, resource, and empower leaders and managers to promote connection in the workplace and implement programmes that foster connection.
- Leverage existing leadership and employee training, orientation, and wellness resources to educate the workforce about loneliness and the importance of social connection for workplace well-being, health, productivity, performance, retention, and other markers of success.
- Create practices and a workplace culture that allow people to connect to one another as whole people, not just as skillsets, and that fosters inclusion and belonging.
- Ensure there are pro-connection provisions and policies in place that protect and encourage workers’ ability to nurture and create connections outside work
- Consider the opportunities and mitigate the challenges posed by flexible work hours and arrangements, which may impact workers’ abilities to connect with others both within and outside of work.
